Luxury Car Leasing Market Growth

Luxury Car Leasing Market Growth

Luxury car leasing provides access to desirable cars at an affordable rate that can otherwise be very expensive if purchased. Many people opt to rent a luxury car as opposed to buying one as it is more economical; since maintenance and handling are mostly managed by the rental company. Luxury car rentals also act as a great solution to business travel as most business-related travel requires luxury grade cars.

An estimate of 12.6% CAGR has been forecast between the years of 2019 – 2026 for the luxury car market. In 2016 the luxury car rental market was worth approximately $10 billion globally, with North America being a key player representing 50% of the global market, with Europe being the second contender with 29%.

By the end of 2022, it has been forecast that the luxury car rental market will be worth approximately $22.5 billion globally. Over the next five years, the worldwide market of luxury car rentals is expected to grow at a CAGR of ~20.0% and will reach a whopping 34000 million USD in 2024.

However, the luxury car rental market has been affected by the global COVID-19 pandemic. The pandemic has affected production and demand, which also led to supply chain disruptions within the car manufacturing industry that in turn has hurt the car rental industry. However, pent-up demand after lock-down is contributing to the recovery of the overall car rental market.

Due to previous lock-downs and self-isolation initiatives by the government, many rental companies have been affected. However, with many states in the U.S. going back to normal the rental market should improve as more and more people are traveling for work from state to state. Also, many countries are lifting travel bans and opening their airports to welcome tourists, increasing the demand for luxury rental cars.

Do you manage a fleet of luxury cars, and has your business been affected by the COVID-19 pandemic? If so, you will require a strong marketing strategy to get your business up and running. Visit the Navotar website for more information on how to improve your business.

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By Navotar  /  28th April 2020